BASF (BAS) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales declined 7% year-over-year to €16.1 billion, mainly due to lower prices, while EBITDA before special items remained stable at €2.0 billion, supported by strong chemical and materials segments despite weaker Agricultural Solutions.

• Volumes (excluding precious and base metals) increased by 2.4% year-over-year.

• Net income was €430 million, down 14% from the prior year quarter.

Financial highlights

• EBITDA before special items was €1,957 million (+0.6% vs. Q2 2023); special items totaled -€451 million, mainly from US litigation settlements and restructuring.

• EBIT before special items was €969 million, down 3.7% year-over-year.

• Operating cash flow was €1,951 million, down 10.4% year-over-year; free cash flow was €471 million, down from €905 million in Q2 2023.

• Equity ratio stood at 44.5% at the end of June 2024.

• Net debt increased to €21.4 billion from €16.6 billion at year-end 2023.

Outlook and guidance

• 2024 EBITDA before special items is forecasted between €8.0–8.6 billion, with free cash flow guidance at €0.1–0.6 billion and CO2 emissions expected between 16.7 and 17.7 million metric tons.

• Q3 2024 market conditions expected to mirror Q2, with an earnings uptick anticipated in Q4.

• Assumptions include global GDP growth of 2.3%, industrial production growth of 2.2%, chemical production growth of 2.7%, €/$ at 1.10, and Brent crude at $80/barrel.